diff --git a/changelogs/fragments/83960-dnf5-state-installed-fix.yml b/changelogs/fragments/83960-dnf5-state-installed-fix.yml
new file mode 100644
index 00000000000..a99d705d0a9
--- /dev/null
+++ b/changelogs/fragments/83960-dnf5-state-installed-fix.yml
@@ -0,0 +1,2 @@
+bugfixes:
+  - "dnf5 - re-introduce the ``state: installed`` alias to ``state: present`` (https://github.com/ansible/ansible/issues/83960)"
diff --git a/lib/ansible/modules/dnf5.py b/lib/ansible/modules/dnf5.py
index 3a4fdfcd595..d5ba51ee6e6 100644
--- a/lib/ansible/modules/dnf5.py
+++ b/lib/ansible/modules/dnf5.py
@@ -638,7 +638,7 @@ class Dnf5Module(YumDnf):
         results = []
         if self.names == ["*"] and self.state == "latest":
             goal.add_rpm_upgrade(settings)
-        elif self.state in {"install", "present", "latest"}:
+        elif self.state in {"installed", "present", "latest"}:
             upgrade = self.state == "latest"
             for spec in self.names:
                 if is_newer_version_installed(base, spec):
@@ -671,7 +671,7 @@ class Dnf5Module(YumDnf):
         if transaction.get_problems():
             failures = []
             for log_event in transaction.get_resolve_logs():
-                if log_event.get_problem() == libdnf5.base.GoalProblem_NOT_FOUND and self.state in {"install", "present", "latest"}:
+                if log_event.get_problem() == libdnf5.base.GoalProblem_NOT_FOUND and self.state in {"installed", "present", "latest"}:
                     # NOTE dnf module compat
                     failures.append("No package {} available.".format(log_event.get_spec()))
                 else:
diff --git a/test/integration/targets/dnf/tasks/repo.yml b/test/integration/targets/dnf/tasks/repo.yml
index d50535be1b7..0e55e2941f7 100644
--- a/test/integration/targets/dnf/tasks/repo.yml
+++ b/test/integration/targets/dnf/tasks/repo.yml
@@ -2,7 +2,7 @@
     - name: Install dinginessentail-1.0-1
       dnf:
         name: dinginessentail-1.0-1
-        state: present
+        state: installed
       register: dnf_result
 
     - name: Check dinginessentail with rpm